3 rd FP (ended December 2018)

Presentation Materials

S-13 CS Mashiki-machi Power Plant

Security code

Canadian Solar Infrastructure Fund, Inc.

S-17 CS Daisen-cho Power Plant (A)Table of contents
1. Financial Highlights ・・・・・・P.

Financial Highlights of 3 rd FP ・・・・・・・・P.
Portfolio Performance ・・・・・・・・・・・・P.

2
3
4

2. Major Topics for 3 rd FP ・・・・・P.

6
Overview of Follow-on Offering ・・・・・・・P. 7
Portfolio ・・・・・・・・・・・・・・・・・・P. 8
Asset List ・・・・・・・・・・・・・・・・・・P. 9
Curtailment Rule ・・・・・・・・・・・・・・P. 10
Impact of Curtailment on 3 rd FP Performance P. 11

3. CSIFʼs Unique Features ・・・・P. 12

Overview of Sponsor ・・・・・・・・・・・・P. 13
Vertically-integrated Business Model ・・・・・P. 14
Strong Financial Base・・・・・・・・・・・・ P. 15
Leasing Structure ・・・・・・・・・・・・・・P. 16
Distribution Policy (Payout Ratio) ・・・・・・P. 17
Green Bond ・・・・・・・・・・・・・・・・P. 18

4. Management Policy・・・・・・・・P. 19

4 th 5 th & 6 th FP Business Forecast ・・・・・・・P. 20
External Growth Strategy（Sponsor Pipeline） ・・P. 21
METI Policy on “Unoperated” Solar Projects ・・・P. 22
Characteristics of PV Plant Revenue ・・・・・・・P. 23

5. Appendix ・・・・・・・・・・・・・P. 24

Unit Price Performance ・・・・・・・・・・・・・P. 25
TSE Listed Infrastructure Fund Market ・・・・・P. 26
Japanese Renewable Energy Market ・・・・・・P. 27
Company History ・・・・・・・・・・・・・・・P. 28
Balance Sheet for 3 rd FP ・・・・・・・・・・・・P. 29
Statement of Income for 3 rd FP ・・・・・・・・P. 30
Status of Unitholders ・・・・・・・・・・・・・・P. 31
Overall Structure ・・・・・・・・・・・・・・・・P. 32
Disclaimer ・・・・・・・・・・・・・・・・・・・P. 33

1

Financial Highlights

Financial Highlights of 3 rd FP
Major difference factor

3rd FP (ended December 2018)Augʼ18
forecast (note)

Increase /decrease

ActualStatement of Income Data
(million yen)

Operating revenues

1,886

1,785

▲101

Operating income

698

644

▲54

Income before income taxes

416

413

▲3

Net income

415

412

▲3

Distribution per unit
(including distributions in excessof earnings) (yen)

3,600

3,600

-

Distributions per unit
(excluding distributions in excessof earnings) (yen)

1,798

1,783

▲15

Distributions in excess of earnings
per unit (yen)

1,802

1,817

15

Operatingrevenue

Performance-based
rent decrease-101

Operatingexpenses

Decreased O&M costand depreciation
expense-20-10

Insurance proceeds+19

Investment unit
issuance expenses
decrease-29

Nonoperating
incomeNonoperating
expenses

3rd FP
distribution per unit
3,600 yen

(Note) Revised forecast as at 14-Aug-2018 as new assets were acquired.

3

Portfolio Performance Total energy output

3 rd FP actual energy output ÷ 3 rd FP projected energy output = 94.2%(MWh)15,00010,000

Projected

Actual
9,105

8,469

10,415

10,234

9,053

10,347

9,652

7,807

8,084

7,981

6,900

5,378

5,000
0

Jul.
7⽉18

Aug.
8⽉18

Sep.
9⽉18

 Energy output by projectS-01 CS Shibushi-shi
Power Plant

Nov.
11⽉18

200

100

100
Jul.
7⽉
18

Aug.
8⽉
18

Sep.
9⽉
18

Oct.
10⽉
18

Nov.
11⽉
18

Dec.
12⽉
18

(MWh)
300

0

S-04 CS Isa-shi Dai-niPower Plant

200

100

100
Aug.
8⽉
18

Sep.
9⽉
18

Oct.
10⽉
18

Nov.
11⽉
18

Dec.
12⽉
18

(MWh)
300

0

S-06 CS Isa-shi Dai-sanPower Plant

Jul.
7⽉
18

Aug.
8⽉
18

Sep.
9⽉
18

Oct.
10⽉
18

Nov.
11⽉
18

Dec.
12⽉
18

Jul.
7⽉
18

Aug.
8⽉
18

Sep.
9⽉
18

Oct.
10⽉
18

Nov.
11⽉
18

Dec.
12⽉
18

Jul.
7⽉
18

Aug.
8⽉
18

Sep.
9⽉
18

Oct.
10⽉
18

Nov.
11⽉
18

Dec.
12⽉
18

Jul.
7⽉
18

Aug.
8⽉
18

Sep.
9⽉
18

Oct.
10⽉
18

Nov.
11⽉
18

Dec.
12⽉
18

(MWh)
300

200

Jul.
7⽉
18

Dec.
12⽉18

(MWh)
300

200

0

S-05 CS Yusui-cho
Power Plant

S-02 CS Isa-shi
Power Plant

(MWh)
300

0

S-03 CS Kasama-shi
Power Plant

Oct.
18
10⽉

(MWh)
400
300

200

200
100
0

S-07 CS Kasama-shi Dai-niPower Plant

100
Jul.
7⽉
18

Aug.
8⽉
18

Sep.
9⽉
18

Oct.
10⽉
18

Nov.
11⽉
18

Dec.
12⽉
18

(MWh)
300

0

S-08 CS Hiji-machi
Power Plant

(MWh)
400
300

200

200
100
0

100
Jul.
7⽉
18

Aug.
8⽉
18

Sep.
9⽉
18

Oct.
10⽉
18

Nov.
11⽉
18

Dec.
12⽉
18

0

4

Portfolio Performance
S-09 CS Ashikita-machi
Power Plant

S-10 CS Minami Shimabara-shi

(MWh)
400

Power Plant (East & West)

600

300

400

200

200

100
0

S-11 CS Minano-machi
Power Plant

(MWh)

7⽉
Jul.
18

8⽉
Aug.
18

9⽉
Sep.
18

10⽉
Oct.
18

11⽉
Nov.
18

12⽉
Dec.
18

(MWh)
400

0

S-12 CS Kannami-cho
Power Plant

300

7⽉
Jul.
18

8⽉
Aug.
18

9⽉
Sep.
18

10⽉
Oct.
18

11⽉
Nov.
18

12⽉
Dec.
18

Jul.
7⽉
18

Aug.
8⽉
18

Sep.
9⽉
18

Oct.
10⽉
18

Nov.
11⽉
18

Dec.
12⽉
18

Jul.
7⽉
18

Aug.
8⽉
18

Sep.
9⽉
18

Oct.
10⽉
18

Nov.
11⽉
18

Dec.
12⽉
18

Jul.
7⽉
18

Aug.
8⽉
18

Sep.
9⽉
18

Oct.
10⽉
18

Nov.
11⽉
18

Dec.
12⽉
18

7⽉
Jul.
18

8⽉
Aug.
18

9⽉
Sep.
18

10⽉
Oct.
18

11⽉
Nov.
18

12⽉
Dec.
18

(MWh)
300
200

200
100

100
0

S-13 CS Mashiki-machi
Power Plant

Jul.
7⽉
18

Aug.
8⽉
18

Sep.
9⽉
18

Oct.
10⽉
18

Nov.
11⽉
18

Dec.
12⽉
18

(MWh)
6,000

0

S-14 CS Koriyama-shi
Power Plant

75

4,000

50

2,000
0

S-15 CS Tsuyama-shi
Power Plant

CS Daisen-choPower Plant (A)(B）

25
Jul.
7⽉
18

Aug.
8⽉
18

Sep.
9⽉
18

Oct.
10⽉
18

Nov.
11⽉
18

Dec.
12⽉
18

(MWh)
300

0

S-16 CS Ena-shi
Power Plant

(MWh)
300

200

200

100

100

0
S-17

(MWh)
100

7⽉
Jul.
18

8⽉
Aug.
18

9⽉
Sep.
18

10⽉
Oct.
18

11⽉
Nov.
18

12⽉
Dec.
18

(MWh)
2,000

0

S-18 CS Takayama-shi
Power Plant

(MWh)
300
200

1,000
0

100
7⽉
Jul.
18

8⽉
Aug.
18

9⽉
Sep.
18

10⽉
Oct.
18

11⽉
Nov.
18

12⽉
Dec.
18

0

5

2. Major Topics for 3 rd FP

Overview of Follow-on Offering
Consistent growth of the largest listed infrastructure fund in Japan sponsored by the Canadian
Solar Group developing business globally Overview of Follow-on Offering (Aug. 2018)

First listed infrastructure fund in Japan
with a portfolio exceeding

100MW (panel output)

 Historical panel output

105.6MW

100

30.3
2.5

30.3
2.5

60
40

72.7

72.7

20
0

Oct. 2017(IPO)

Reg-S Global Offering

Units offered

46,667

Total issue amount¥4,509,198,875

Issue price¥102,180

Announcement date

14-Aug-2018

Pricing date

29-Aug-2018

Global coordinator

Mizuho Securities Co., Ltd.

 Overview of Portfolio (As at period-ended Decʼ2018)

（MW）
120

80

Offering format

Feb.2018

Sep.2018# of projects

Total price(note)

Panel output

18¥47.09Bn

105.6MW(Note) “Price” refers to the median project valuation report amount, which is theestimated values provided to us by PricewaterhouseCoopers Sustainability LLC in
its project valuation reports as of December 31, 2018.

Total

7

Portfolio As at period-ended Decʼ2018
S-01 CS Shibushi-shi
Power Plant
1.2MW

S-02 CS Isa-shi Power Plant
0.9MW

S-03 CS Kasama-shi
Power Plant
2.1MW

S-04 CS Isa-shi Dai-niPower Plant
2.0MW

S-05 CS Yusui-cho
Power Plant

S-06 CS Isa-shi Dai-sanPower Plant
2.2MW

S-07 CS Kasama-shi Dai-niPower Plant
2.1MW

S-08 CS Hiji-machi
Power Plant

2.6MW

S-09 CS Ashikita-machi
Power Plant
2.3MW

S-10 CS Minami Shimabara-shi

S-11 CS Minano-machi
Power Plant
2.4MW

S-12 CS Kannami-cho
Power Plant
1.3MW

S-13 CS Mashiki-machi
Power Plant 47.7MW

S-14 CS Koriyama-shi
Power Plant
0.6MW

S-15 CS Tsuyama-shi
Power Plant
2.0MW

S-16 CS Ena-shi
Power Plant

S-17 CS Daisen-cho

S-18 CS Takayama-shi
Power Plant
1.0MW

2.1MW

Power Plant (A)(B）27.3MW

1.7MW

Power Plant (East ＆ West) 3.9MW

8

Asset List
No.

Project nameLocation

Acquisition price(yen millions)Price (yenmillions) (note)

Investment
ratio (％)

Panel output
(kW)

S-01

CS Shibushi-shi Power Plant

Shibushi-shi, Kagoshima

540

597

1.27

1,224.00

S-02

CS Isa-shi Power Plant

Isa-shi, Kagoshima

372

395

0.84

931.77

S-03

CS Kasama-shi Power Plant

Kasama-shi, Ibaraki

907

1,078

2.29

2,127.84

S-04

CS Isa-shi Dai-ni Power Plant

Isa-shi, Kagoshima

778

820

1.74

2,013.99

S-05

CS Yusui-cho Power Plant

Aira-gun, Kagoshima

670

707

1.50

1,749.30

S-06

CS Isa-shi Dai-san Power Plant

Isa-shi, Kagoshima

949

1,006

2.14

2,225.08

S-07

CS Kasama-shi Dai-ni Power Plant

Kasama-shi, Ibaraki

850

892

1.89

2,103.75

S-08

CS Hiji-machi Power Plant

Hayami-gun, Oita

1,029

1,082

2.30

2,574.99

S-09

CS Ashikita-machi Power Plant

Ashikita-gun, Kumamoto

989

1,055

2.24

2,347.80

S-10

CS Minamishimabara-shi Power Plant (East & West)

Shimabara-shi, Nagasaki

1,733

1,915

4.07

3,928.86

S-11

CS Minano-machi Power Plant

Chichibu-gun, Saitama

1,018

1,161

2.46

2,448.60

S-12

CS Kannami-cho Power Plant

Tagata-gun, Shizuoka

514

575

1.22

1,336.32

S-13

CS Mashiki-machi Power Plant

Kamimashiki-gun, Kumamoto

20,08423,03548.91

47,692.62

S-14

CS Koriyama-shi Power Plant

Koriyama-shi, Fukushima

246

261

0.55

636.00S-15

CS Tsuyama-shi Power Plant

Tsuyama-shi, Okayama

746

791

1.68

1,963.00

S-16

CS Ena-shi Power Plant

Ena-shi, Gifu

757

813

1.73

2,124.20

S-17

CS Daisen-cho Power Plant (A) (B)Saihaku-gun, Tottori

10,447

10,58122.47

27,302.40

S-18

CS Takayama-shi Power Plant

Takayama-shi, Gifu

326

330

0.70

962.2842,96147,099100.00105,692.80

Total(Note)“Price” refers to the median project valuation report amount, which is the estimated values provided to us by PricewaterhouseCoopers Sustainability LLC in its projectvaluation reports as of December 31, 2018.

9

Curtailment Rule
Impact of “Output Curtailment” is limited① Thermal power generation is the first to be subject of output controls as it comprises roughly 85% of the current
energy mix. Priority of output controls on solar and wind power is on the lower end of the scale below pumpedstorage hydroelectric power plants, power supply beyond the respective grid using transmission line, and biomass② All CSIF assets as at the end of the 3 rd FP is subject to “30-day output control”→ Solar power output of CSIF-owned assets is subject to a maximum of 30-day output curtailment within
the respective year
Order of the sources regulated outputs

00 Regulation of Power Sources Ⅰ (generators and those of pumped storage
secured by general distribution utilities for adjustment) and pumping operation
Regulation of Power Sources Ⅱ (generators and those of pumped storage which
can be controlled by general distribution utilities) and pumping operation

01 Regulation of Power Sources Ⅲ (generators such like thermal power including
woody biomass and those of pumped storage which canʼt be controlled by general
distribution utilities) and pumping operation
02 Supplying beyond the Kyushu region using transmission line
03 Regulation of biomass
04 Regulation of biomass using regional resources ※1
05 Regulation of power sources fluctuated by natural factors (Solar and wind)
06 Measures based on Organization for Cross-regional Coordination ofTransmission Operators※２
7 Regulation of long-term fixed power sources (Nuclear, Hydro and geothermal)*1 They will be exempted from restraining output when controlling output is difficult due to technical matters and so on*2 Interchange according to instructions given by Organization for Cross-regional Coordination of Transmission Operators

Source︓KYUSHU ELECTRIC POWER CO., INC.

10

Impact of Curtailment on 3 rd FP Performance Status of CSIF solar plant operations
9 out of 18 assets in the portfolio are located in Kyushu
Kyushu Electric Power conducted an output curtailment spanning over a total of 8 days during 3 rd FPending Dec 2018 (184 day period).
Certain plants owned by CSIF were subject to the curtailment for a maximum of 2 days.
Date of curtailment

Affected solar plant

14-OctS-08

Hiji-machi PP

20-OctS-13

Mashiki-machi PP

21-Oct

S-02

Isa-shi PP

S-04

Isa-shi Dai-ni PP

S-05

S-06

Isa-shi Dai-san PP

S-09

Ashikita-machi PP

S-10

3 - N o v

S-01

Shibushi-shi PP

4 - N o v

S-01

Shibushi-shi PP

S-08

Hiji-machi PP

S-13

Mashiki-machi PP

11-Nov

S-04

Isa-shi Dai-ni PP

S-05

Yusui-cho PP

S-06

Isa-shi Dai-san PP

Yusui-cho PP
Minami Shimabara-shi PP(East & West)

Round-1

Round-2

 Impacts
Total rent income decrease for3 rd FP-ending Dec2018¥3.83 MM

Ratio of impacted rent against
total portfolio rent revenue for
FＰ-ending Dec2018

0.21 ％Overall, the impactof the output
curtailment was
minor
11

３. CSIFʼs Unique Features

Overview of Sponsor
 Canadian Solar Groupʼs history

 Canadian Solar Groupʼs Global Operations

Founded in Ontario, Canada, 2001
Listed on NASDAQ (CSIQ) in 2006
Over 12,000 employees globally
Presence in 20 countries/territories
Delivered solar panels amounting to over
30 GW total capacity
4.6 GWp solar power plants build andconnected globally (incl. Recurrent Energy)

CanadaU.S.
3 Mexico
4 Brazil
5 Germany
6 Spain7 Turkey
8 South Africa
9 UAE
10 India
11 Singapore
12 Japan
13 Korea
14 Australia
12

1 Canada
2 Brazil

３ China

４ Thailand
５ Vietnam

As of March 31, 2018
●Base of Sales◆Base of Manufacturing

６ Indonesia
Source: Compiled by the Asset Manager based on“Investor Presentation as of November15,2018”
by Canadian Solar Inc.

Ranked 3rd globally in terms of sales
Entered the Japan market in 2009 andestablished proven track record for shipping
PV modules

Canada (2009)

U.S. (2010)(*) There is no assurance that we can acquire the solar energy projects showed in theabove pictures in the future as of this writing.

13Vertically-integrated Business Model
GrowthPV plant
Acquire PV
plants

Project owner

CS Mashiki-machi
Power Plant

Own and lease solar
energy projects

Canadian Solar Infrastructure Fund,
Inc.

ProvideO&M
services

PV plant
management

Lease PVfacilities
PV plantdevelopment

Canadian Solar Group (incl. sponsor)
Module
Cell

Wafer

Ingot
SiliconDeveloper
Canadian Solar Projects K.K.

O&M provider
Canadian Solar O&M Japan K.K.

14

Strong Financial Base Financial soundness attributed to fixed interest rate conversion and LTV controls
InitialLoandrawdown
Type
Outstanding
amount(yen millions)(yen millions)Interest
Drawdown date
rate typeInterest rate

Maturity

Base rate plus 0.45%(fixed at 0.845% upon executinginterest rate swap)

Fixed

31-Oct-2017

10 years from drawdown date
JCR Green Bond Evaluation

844

Base rate plus 0.45%

Variable

1-Feb-2018

3 years from drawdown date

7,806

Base rate plus 0.45%(fixed at 1.042% upon executinginterest rate swap)

Fixed

6-Sep-2018

10 years from drawdown date

Base rate plus 0.20%

Variable

6-Sep-2018

Earlier of (i) June 30, 2020 or (ii) firstinterest payment date after the
consumption tax refund date

Longterm

15,70014,796

Longterm

900

Longterm

8,000

Longterm

850

850

Total

25,45024,297

 Ratio of fixed-to-variable rate loans and LTV
Fixed-to-variableinterest rate ratio

LTV(as at end of December 2018)(as at end of December 2018)93.03％

49.78％(excl. consumption tax bridge loan)

51.59％(incl. consumption tax bridge loan)(Note) “Fixed-to-variable interest rate ratio” refers to the ratio of fixed interest rate liabilities to total interest-bearing liabilities (incl. consumption tax bridge loan – the same
shall apply herein) as of this writing. Variable interest rate liabilities that were converted to fixed interest rate liabilities through interest rate swap agreements weredeemed as fixed interest rate liabilities.

15

Leasing Structure Calculation method of basic rent and variable rent in anticipated projects to be acquired
Basic rentMonthly projected energy output (P50) ×(100－Y)% × 70% × FIT purchase price

Variable rent(Monthly actual energy output × (100－Y)% × FIT purchase price) － Basic rent

 Even if actual energy output is lower than projected energy output (P50), the operator will be able to receive basic rent from lessee
 If actual energy output exceeds 70% of projected energy output (P50), possible to obtain variable rent

 Diagram of rent structure
Projected revenue from sales of electricity(before deducting lessee’s operating costs andoperator compensation)
×Y％

Projected energy output (P50)
×FIT purchase price

Rental income of Canadian Solar
Infrastructure Fund, Inc.

Projected energy output (P50)
×FIT purchase price×(100-Y)%
Variable rent

Projected energy output (P50)
×FIT purchase price × X%
×Y％Projected energy output (P50)
×FIT purchase price × X%
×(100-Y)%

Basic rent

Projected energy output(P50)×X%

Projected energy
output (P50)*1: Projected energy output (P50) is monthly predicted solar energy output inlease term as described in technical report*2: Y is percentage based on lessee’s operation cost and operator compensation*3: Negative variable rent is regarded as zero

Actual energy output

16

Distribution Policy (Payout Ratio) Distribution policy focusing on payout ratio Cash distributions to our unitholders for each fiscal period are calculated by multiplying the residual free cash flow(“NCF”), which refers to free cash flow (“FCF”) minus debt interest payments, by a payout ratio, which is determinedby us for each fiscal period.

 Distribution in excess of earnings

Expenses ofleasing business

Expenses ofleasing business

Debt interest

Capital expenditure

Debt interest

Total rental
revenues

FCF made by
renewable energy facilities

Use forreinvestment

Debt repayment

Up to 60%of depreciation

Depreciation

Retained earnings
Residual FCF(NCF)

Revenue

Expenses

Residual FCF
×Payout ratio

Cash distribution

Distribution

Distribution inexcess of earnings
Distribution
from profit

Breakdown

Net income

P/L(Note-1) Residual FCF is calculated as free cash flow minus interest payments related to interest-bearing debt and repayments of interest-bearing debt for the relevant fiscal period plus
total amount of net cash flow remaining after deduction of distributions from the preceding fiscal periods.
(Note-2) Our calculation method of payout ratio differs from that of other enterprises (i.e. cash distribution divided by current income).
(Note-3) Under the standards set forth by the Investment Trusts Association, Japan, closed-end infrastructure funds, such as us, may return capital up to 60% of the amount obtainedby deducting the amount of their accumulated depreciation recorded as of the end of the preceding fiscal period from the amount of their accumulated depreciation calculated
as of the end of the relevant fiscal period.
(Note-4) The chart above is presented solely to facilitate a general understanding of the mechanism for cash distributions, and does not represent the share of our rental revenues orcash distributions in excess of retained earnings. We may decide not to make any amount of cash distributions in excess of retained earnings for a particular fiscal period,
based on a consideration of factors such as economic or renewable energy market conditions or our financial condition, among other factors, after taking into account our
financial situation and alternative uses of cash, such as the execution of repair plans and capital expenditures, the repayment of borrowings and property acquisition
opportunities. We may, in place of making cash distributions in excess of retained earnings, decide to acquire our own units.

17

Green Bond
 Acquisition of JCRʼs Green Bond Evaluation
Borrowings executed on October 31, 2017 were assigned the highest-grade evaluation of “Green 1” inJapan Credit Rating Agency (JCR) ʼs Green Bond Evaluation on November 22, 2017. JCR reviewed
Green Bond Evaluation on January 23, 2019 and continued the same "Green1" evaluation.

Acquisition priceof 13 projects
acquired in IPO
JPY 30.4 Bn

CS Mashiki-machi
Power Plant

Borrowings
JPY 15.7 Bn

Unitholdersʼ
equityissued on IPOBankJCR assigned
the highest-grade evaluation
Green1in JCRʼs Green Bond Evaluation

18

４. Management Policy

4th 5th & 6th FP Business Forecast
 業績予想4th Fiscal Period(ending June 2019)

5th Fiscal Period(ending December 2019)

6th Fiscal Period(ending June 2020)

Statement of Income (million yen)
Operating revenue

2,072

2,154

2,062

Operating profit

703

784

723

Ordinary profit

573

659

602

Current net profit

572

658

602

DPU (incl. distributions in excess of earnings)

3,600

3,600

3,600

DPU (excl. distributions in excess of earnings)

2,478

2,849

2,605

Per unit distributions in excess of earnings

1,122

751

995

Congruent with CSIFʼs policy to maintain stable levels of distributions,projected DPU for the 4 th FP (ending Jun. 2019), 5 th FP (ending Dec. 2019) and6 th FP (ending Jun. 2020) is ¥3,600(Note-1) Figures are rounded down to the nearest million yen.
(Note-2) Above forecasts are based on earnings summary dated 15-Feb-2019 and is subject to change due to factors including without limitation, acquisition or sale of renewableenergy projects, changes in infrastructure markets, fluctuation in interest rates and other changes in circumstances surrounding CSIF. Forecasts do not guarantee any
dividend amounts.

20

External Growth Strategy（Sponsor Pipeline）
Achieve ¥100Bn in asset size over the medium term drawing on acquisitions from sponsor pipeline
 Sponsor portfolio snapshot

Operational and underconstruction

FIT purchase price range: ¥32~¥40/kWh(1)By size (per asset)

3

9.9%

8

 Map of owned assets and sponsor assets

36円/kWh￥36/kWh

5MW以上10MW未満
5MW~10MW

1

ENR projects (2)228.0MW40円/kWh￥40/kWh

10MW以上50MW未満
10MW~50MW

2MW未満
~2MW

32円/kWh￥32/kWh

62.6％

Operational~￥32/kWh
32円/kWh未満

CS Gunma Aramaki
CS群⾺新牧発電所
Power Plant●（内、2018年9⽉
稼働済資産(Assets
acquired as at
公募増資時取得物件は（
内 、取6得are
予 定highlighted
資産は
Sept.

CSJ
Oita Power Plant
CSJ⼤分発電所

CS
Yamaguchi Shinmine
CSJ⼭⼝新美祢発電所
Power
Plant
（56.3ＭＷ）(56.3MW)● Under
建設中資産
Construction● Under
開発中資産
Development● Acquired
保有資産 by CSIF

（2.5ＭＷ）(2.5MW)(as at 31-Jul-2018)(as at 31-Jul-2018)

CS Hiji-machi
Power Plant
CS⽇出町発電所（53.4ＭＷ）(53.4MW) Operational start year and status ofsponsor portfolio assets(1)
（MW）
450

Operational
MW（稼働済）

Under
MW（建設中）construction

Under
MW（開発中）development

35.8

350
300

134.4

250
7.6

150
100
0

212.6

110.0
稼働済
Operational

53.4

64.2

10.8

2018年
Aug.2018~（８⽉以降）

2020年
2020

2021年以降
2021~

累計
Total

（19.0ＭＷ）(19.0MW)

228.0

ENR対象物件
ENR
projects(2)
（注2）
（注9）
（注10）

in太枠
boldにて記載）
frame)

CS⼤⼭町発電所（A）、
CS Daisen-cho
同発電所
Power
Plants （B）(A) & (B)
（27.3ＭＷ）(27.3MW)CS Marumori-machi
CS丸森町発電所
Power Plant（2.2ＭＷ）(2.2MW)
CS Koriyama-shi
CS郡⼭市発電所
Power Plant（0.6ＭＷ）(0.6MW)

CS Takayama-shi PowerCS⾼⼭市発電所
Plant（0.9ＭＷ）(0.9MW)

CS
Misato-machi
CS美⾥町発電所
Power
Plant
（1.0ＭＷ）(1.0MW)

CS CS伊佐市発電所
Isa-shi Power Plant（0.9ＭＷ）(0.9MW)

CS
Minano-machi
CS皆野町発電所
Power
Plant
（2.4ＭＷ）(2.4MW)

CS Isa-shi Dai-ni
CS伊佐市第⼆発電所
Power Plant

CS笠間市発電所
CS Kasama-shi
Power Plant（2.1ＭＷ）（2.0ＭＷ）(2.0MW)

110.0
2019年
2019

CS南島原市発電所（東）、CS Minamishimabara-shi
Power同発電所
Plant (East・West)（⻄）(3.9MW)（3.9ＭＷ）
CS
CSAshikita-machi
北町発電所
Power
Plant
（2.3ＭＷ）(2.3MW)

386.8 MW

34.7

200

50

CS Mashiki-machi
CS益城町発電所
Power Plant（47.6ＭＷ）(47.6MW)(as at 31-Jul-2018)

ENR projects
MW（ENR対象物件）

400

26projects, 386.8MW

21.7％

50
50MW以上MW~

2MW以上5MW未満
2MW~5MW

16projects, 212.6MW

Total sponsor portfolio(1)

5.7%

9

5

10projects, 174.2MW

By FIT price (panel output)

Under development

CS
Shizuoka Shuzenji
CS静岡修善寺発電所
Power Plant（10.8ＭＷ）(10.8MW)CS Isa-shi Dai-san
CS伊佐市第三発電所
Power
Plant
（2.2ＭＷ）(2.2MW)

CS Tsuyama-shi

CS Kannami-cho

CS Yusui-cho
Power Plant
CS湧⽔町発電所

CS津⼭市発電所
Power Plant

CS函南町発電所
Power Plant

CS Shibushi-shi
CS志布志市発電所
Power Plant

CS Ena-shi
CS恵那市発電所
Power Plant

CS Shizuoka Numazu
CS静岡沼津発電所
Power Plant（1.7ＭＷ）(1.7MW)（1.9ＭＷ）(1.9MW)(2.1MW)

CS笠間市第⼆発電所
CS Kasama-shi（2.1ＭＷ）
Dai-niPower Plant(2.1MW)（1.3ＭＷ）(1.3MW)（1.2ＭＷ）（2.1ＭＷ）（1.0ＭＷ）
Source: Compiled by the Asset Manager based on disclosures by Canadian Solar Projects K.K.
(1.0MW)(2.1MW)(1.2MW)
Note: (1) Includes the acquired assets from the follow-on offering in September 2018.
(2) Total panel output of ENR projects are based on development plans as of July 31, 2018. Forecasted output and actual output may differ. Licenses and permits for ENR project development may not be completed and there is no assurance
that these projects will reach completion nor be ready for commercial operation. With respect to these ENR projects, CSIF has been granted Exclusive Negotiation Rights from project developers. As at July 31, 2018, the sponsor does notretain ownership of these projects and there is a likelihood that the sponsor will not acquire the project among other reasons. As at July 31, 2018, CSIF does not intend to acquire these projects and there is no assurance that CSIF will acquire
these projects.
(3) The panel output capacity for the solar energy projects under construction and projects under development is based on development plans as of July 31, 2018. Forecasted output and actual output may differ.

21

METI Policy on “Unoperated” Solar Projects
Policy to reduce FIT price on a portion of unoperated solar projects certified between FY2012-2014
 Overview
Many projects after becoming FIT-certified are not operational.
Hence, METI announced a deadline(1) for the start of operation asmeans to reduce the number of projects that havenʼt started
operations.



METI imposed deadline to submit an application for grid connection
work and announced that price guarantees under FIT price will be
reduced for any project that misses the deadline.

For projects that have missed the deadline, the FIT purchase pricewill correspond to prices 2 years prior to the deadline expiry.
Project output



Deadline for
Deadline for start
application for gridof operations
connection work

Less than 2MW

2019/3/31

2020/3/31

More than 2MW

2019/9/30

2020/9/30

Under environmental
assessment

2020/3/31

2020/12/31

This policy is expected to spur the development of unoperated
solar projects and fill up unused grid capacity by reducing suchdelayed projects as well as stimulate the solar energy market.
FIT price for operational projects are not affected by this policy,
and projects that have submitted an application for gridconnection work are not immediately affected.

 Projects affected by policy
Unoperated projects(2)Operational(10,000kW)

Total
Not operational（10,000kW） (10,000kW)

Year of FIT
certification

FIT price
(yen)

2012

40

1,147

335

1,482

2013

36

1,355

1,284

2,639

2014

32

516

733

1,249

2015

27

174

177

351

2016

24

142

654

796

2017

21

16

247

263

3,351

3,430

6,780

Total

【Affected projects】
 Commercial projects certified between FY2012〜2014
 Projects where the operational start date is not set
 Projects with over 2MW capacity that have not started
construction(3)Source: METI
Note: (1) Deadline for starting operations will be established on projects that have concluded a Grid
Connection Agreement. If the deadline is missed, the duration of grid connection will be
shortened on a monthly basis.
(2) Translated excerpts from METIʼs report (“既認定案件による国⺠負担の抑制に向けた対応”)
released 5-Dec-2018.
(3) Refers to projects where no “Construction Plan” pursuant to the Electric Utility Industry
Law has been submitted as at 5-Dec-2018

Impact on sponsor pipeline is minimal
22

Characteristics of PV Plant Revenue
 Forecastability of earning stability on a long-term basis
 FIT price and FIT period of our PV plants are binding in accordance with the Feed-in-Tariff system. Moreover, giventhat our assets-under-management are set up so that we can capture basic rent from the lessee, we assume that any
decline in rent income wonʼt exceed a certain limit.
 Given that expenses on depreciable assets are largely fixed, earnings forecasts can be realistically projected for the
long-term.
 Dynamics of PV plant revenue during FIT period○ Assuming that we purchase PV projects and do not purchaseAmountOperatingexpenses

Operatingrevenues

Net income

additional assets nor sell them, fluctuations in operating revenue,
operating expenses and non-operating expenses during the FIT
period will follow the general tendencies listed below. Hence, ourunderstanding is that CSIFʼs current income will gradually increaseover the medium to long term during the FIT period.
○ Operating revenues generally decrease gradually over the medium tolong term due to expected deterioration of PV modules.
○ Operating expenses generally decrease (mainly composed of taxes
on depreciable assets that are calculated using the straight-line
method) gradually over the medium to long term, under thepresumption that expenses other than taxes on depreciable assets
are largely fixed (including assumed regular maintenance costs).

○ Amortization payments of loan principal and interest rates that are

Non-operating
expensesTime

partially fixed generally cause non-operating expenses to decrease
gradually over the medium to long term given typical amortization
schedules, as these payments are the primary component of nonoperating expenses.

23

Appendix

Unit Price Performance

（JPY）
（円）

Unit price(left axis)（units）（⼝）

Volume(right axis)

115,000

6,000

110,000

105,000
4,000

100,000

95,0002,000
90,00085,00080,0002018/7/2
Jul.2
2018

2018/8/2
Aug.2
2018

2018/9/2
Sep.2
2018

2018/10/2
Oct.2
2018

2018/11/2
Nov.2
2018

2018/12/2
Dec.2
2018

0
Dec.28 201825

TSE Listed Infrastructure Fund Market
 History of TSE Infrastructure Fund Market
April 2015

Inception of TSE Infrastructure Fund Market- Under the Act on Special Measures Concerning Taxation, the period of conduit status for infrastructure funds
investing mainly in renewable energy generators was extended from 10 years to 20 years.
- Exceptional rule for renewable energy power generators- Conditional that renewable energy facilities are acquired and ready for lease by March 2017
April 2016

Infrastructure fund
Conduit status of infrastructure funds
extended from 10 years to 20 years

Renewable energy
power plant

Debt
EquityJune 2016

IPO of Takara Leben Infrastructure Fund (17.9MW, ¥4.52Bn initial market cap(Note))

December 2016

IPO of Ichigo Green Infrastructure Investment Corporation (25.8MW, ¥5.02Bn initial market cap(Note))

March 2017

IPO of Renewable Japan Energy Infrastructure Fund, Inc. (21.8 MW, ¥3.78Bn initial market cap(Note))

April 2017

Requisite acquisition period for infrastructure funds to invest in renewable energy generators and be approved
conduit tax treatment (for 20 years) was extended three years from March 31, 2017 to March 31, 2020

October 2017

IPO of Canadian Solar Infrastructure Fund, Inc.
(72.7MW, ¥17.93Bn market cap(Note) as at IPO)

September 2018 Follow-on Offering of Canadian Solar Infrastructure Fund, Inc.
September 2018 IPO of Tokyo Infrastructure Energy Investment Corporation (20.0MW, ¥4.54Bn initial market cap(Note))
February 2018

IPO of ENEX Infrastructure Investment Corporation (37.6MW, ¥8.78Bn initial market cap(Note))

Source: Bloomberg
Note: Market cap calculated by multiplying the total issued units on the listing date and the IPO subscription price.

26

Renewable Energy Market in Japan Renewable energy mix and comparable energy self-sufficiency by country At the Paris Climate Change Agreement, Japan pledged to reduce CO emissions by 26% (vs. 2013 levels) by 2030
 Comparable renewable energy mix (2014)
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

amongst OECD (2012 estimates)
1 Norway
2 Australia
3 Canada

677.4%
235.4%
166.2%

・・・

8 U.S.

85.0%

・・

EnglandFranceAmerica

20 Germany

40.1%

27 Spain

25.8%

30 Korea

18.0%

・・・

Spain

60.7%
52.9%

・・・

2 2014: 3.2％
→2016: 7.8％
Germany

14 U.K.
15 France
・・・

Japan

・・・

2 2014: 23.3％→2016: 27.7％

 Comparable primary energy self-sufficiency

Renewable energy (excl. hydropower)

Hydropower

Coal

Oil

LNG

Nuclear

Source: Compiled by the Asset Manager based on the “FY2015 Annual Report on Energy (Energy White Paper
2016)” by METI.
Note: Data on Japan based on the “Summary of Electric Power Development” by METI (FY2014 actuals). Data onother countries based on 2014 estimates and IEA Energy Balance of OECD Countries (2015 edition)

33 Japan
34 Luxembourg

2016:8.4％

6.0%
2.9%
0%

200%

400%

600%

800%

Source: Compiled by the Asset Manager based on Graph 111-1-1 of the FY2013 Annual Report on Energy(Energy White Paper 2014) by METI
Source: Complied by the Asset Manager based on “Energy Balance of OECD Countries 2013” by the IEA.

 Changes in the energy market

 METI projections of future energy mix and medium-long term changes to FIT purchase price Trends in FIT purchase price and average system

 Installed solar capacity… METI predicts that solar

energy will comprise 7% of the total 2030 energy mix

(GW)
80
70
60
50
40
30
20
10
0

50

costs of solar energy projects (2012-2018)
42.1

40
64.0

30

40.4

40

37.3
36

34.1
32

20

0
2012
2030
Forecast
2030年度見込値

Source: Compiled by the Asset Manager based on the following: data from METI website, “Long-term Outlook ofEnergy Supply and Demand (July 2015) by METI, “FY2015 Annual Report on Energy (Energy White Paper
2016)” by METI and data from the Federation of Electric Power Companies.
Note: Projection for FY2030 is based on the percentages and installed capacity disclosed in the reports preparedby METI and are not based upon our calculations. There is no guarantee that the projected percentages orcapacity will be realized.

31.4

2013

FIT
Purchase Price
買取価格（左軸）(Left axis)

2014

29.9

28.6

40
30

29
24

10

June 20182018年6月

32.3

50

20
21

18

10

0
2015
2016
2017
2018
Average system cost
10kW以上の太陽光発電設備のシステム費用の平均値（右軸）(Right axis)

Source: Compiled by the Asset Manager based on “Report on Procurement Prices after FY2019 (January 9, 2019)” by
METI.
(1) FIT purchase price for each year based on a period from April to March of the following year and excludes
national and local consumption taxes.
(2) Average system costs are based on the calendar year.

Note:

27

Company History
 Timeline
Date

Event

April 21, 2017

Notification on incorporation of the Investment Corporation by the organizer (Canadian Solar
Asset Management K.K.) in accordance with Article 69, Paragraph 1 of the Investment Trust Law

May 18, 2017

Registration of incorporation of the Investment Corporation in accordance with Article 166 of theInvestment Trust Law, Company Incorporation

May 25, 2017

Application for registration of the Investment Corporation in accordance with Article 188 of theInvestment Trust Law

June 9, 2017

Prime Minister's approval of registration of the Investment Corporation in accordance with Article
187 of the Investment Trust Law (Kanto Regional Finance Bureau Director-General Registration
No. 127)

July 11, 2017

Amendment of Articles of Incorporation

October 30, 2017

Listing on Tokyo Stock Exchange (Securities Code:9284)

September 6, 2018

Follow-on Offering

28Balance Sheet for 3 rd FP
 3 rd Fiscal Period (ended December 2018)
 Assets(in thousands of yen)

Current assets
Cash and bank deposit
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
Other current assets
Total current assets

685
4,333,268

797,621△28,399769,22137,427,871△1,405,797
36,022,074
505,287△22,181
483,106
4,309,021
6,244
41,589,667

Intangible assets

Guarantee deposits
Total investments and other assets
Total fixed assets
Total assets

Accounts payable (other)
Long-term borrowings to be repaid within 1 year
Accounts payable
Accrued expenses
Income taxes payable
Deposits received
Total current liabilities

25,2901,239,176
56,31773,449857
5,246
1,400,337

Fixed liabilities

Property and equipment

Leasehold rights
SoftwareTotal intangible assets
Investments and other assets
Long-term prepaid expenses
Deferred tax asset
Long-term deposits(in thousands of yen)

Current liabilities
3,222,807
208,913
107,714793,148

Fixed assets
Structures
Accumulated depreciation
Total structures (net)
Machinery and equipment
Accumulated depreciation
Total machinery and equipment (net)
Tools, equipment and supplies
Accumulated depreciation
Total tools, equipment and supplies (net)Land
Construction in progress
Total property and equipment

 Liabilities and Net Assets

494,487
2,763
497,250
324,500
12
7,800
21,021
353,333
42,440,252
46,773,521

Long-term borrowings
Total fixed liabilities
Total liabilities
Unitholders’ equity
Unitholders’ capital
Amount deducted from Unitholdersʼ capital
Unitholdersʼ capital (net)
Surplus
Unappropriated retained earnings(accumulated deficit)
Total surplus
Total unitholders’ equity
Total net assets
Total liabilities and net assets

23,057,919
23,057,919
24,458,257
22,050,175△147,209
21,902,965
412,298
412,298
22,315,263
22,315,263
46,773,521

29

Statement of Income for 3 rd FP
 3 rd Fiscal Period (ended December 2018)(in thousands of yen)

Operating revenues
Rental revenues
Total operating revenue
Operating expenses
Rental expenses of renewable energy projects
Asset management fee
Administrative service fees
Director’s compensation
Tax and dues
Other operating expenses
Total operating expenses
Operating profit/loss（△）

1,785,374
1,785,374
1,035,958
43,934
17,0662,400
1,346
39,9281,140,634
644,739

Non-operating income
Interest income
Insurance proceeds
Tax refunds
Total non-operating income

17
18,815
1,942
20,775Non-operating expenses
Interest expenses
Borrowing-related expenses
Organization expenses
Investment unit issuance expenses
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes
Income tax adjustments
Total income taxes
Net income
Profits (losses) brought forward
Unappropriated retained earnings(accumulated deficit)

97,912
103,408
51,132
252,452
413,062
413,062860
14874
412,187110412,298

30

Status of Unitholders
 Unitholding (as at period-ended December 2018)
 By unitholding amount# ofinvestment
units:
231,190■ Individuals / others

116,013 units (50.18%)■ Financial institutions

14,715 units (6.36%)(incl. financial instruments firms)■ Domestic corporates

43,740 units (18.92%)■ Foreign entities & individuals

56,722 units (24.53%)

 By unitholders■ Individuals, others# ofunitholders
9,815

Name

■ Financial institutions

9,564 (97.44%)
31 (0.32%)(incl. financial instruments firms)■ Domestic corporates

154 (1.56%)■ Foreign entities & individuals

66 (0.67%)

Number ofinvestment units
held (units)

Unitholding ratio to total
issued units (％)

１

Canadian Solar Projects K.K.

33,895

14.66

２

GOLDMAN SACHS INTERNATIONAL

20,685

8.94

３

SSBTC CLIENT OMNIBUS ACCOUNT

12,831

5.54

４

UBS AG LONDON A/C IPB SEGREGATED CLIENT ACCOUNT

3,452

1.49

５

The Bank of Fukuoka, Ltd.

3,430

1.48

６

CITIBANK INTERNATIONAL PLC AS TRUSTEE FOR STANDARD LIFE WEALTH PHOENIX FUND

2,978

1.28

７

Individual investor

2,760

1.19

８

Individual investor

2,312

1.00

９

GOVERNMENT OF NORWAY

2,234

0.96

10

BNY FOR GCM CLIENT ACCOUNTS（Ｅ）ISG

1,538

0.66

86,115

37.24

Total
(Note): Unitholding ratio is rounded down to the nearest hundredth.

31

Overall Structure Identical structure as a typical J-REIT Our revenue is derived from rent income of solar energy projects
Canadian Solar Asset Management K.K.
Engaged in asset management in Canadian Solar
Infrastructure Fund, Inc.
 Established in June 2016
Canadian Solar Projects K.K. (Sponsor)(Sponsor / Operator)
 Engaged in construction and operation of solar
energy facilities
 Established in May 2014

Canadian Solar O&M Japan K.K.
Provides O&M services to solar energy facilities
including our currently-owned projects
 Established in June 2016


AssetManagement
Agreement

AssetManager
EquityInterest

SponsorSupportAgreement

Sales of PV modules for use in residential andindustrial solar power systems
 Established in June 2009

Investment
Corporation(Fund)

Investors
EquityLoan
Agreements

Lenders

Sponsor /Operator
O&M Service
Agreement

Solar Energy
Projects
Lease /
Purchase
Agreements

O&M

Landowners

Lease / Operation
Agreement

Canadian Solar Japan K.K.


Distributions

Asset Management
Service Agreements

LesseeOperator
SPC, etc.

Utilities
PPAs /
Interconnection
Agreements

32

Disclaimer• This document has been prepared to provide information, and is not for soliciting and inviting investments in orrecommending transaction of certain products. We request investors to make investments with their own
responsibility and judgment.
• This document does not constitute a disclosure document or a management report based on the Financial
Instruments and Exchange Act, the Act on Investment Trusts and Investment Corporations or the listing regulationsof the Tokyo Stock Exchange.
• In addition to information on Canadian Solar Infrastructure Fund, Inc. (the "Investment Corporation"), this document
includes figures, tables and data prepared by Canadian Solar Asset Management K.K. (the "Asset Manager") based ondata/index and other information released by third parties. Analysis, judgment and other views of the Asset Manager
on such information at the time of preparation are also included in this document.
• The information contained in this document is not audited and there is no assurance of the accuracy and certainty ofsuch information. Analysis, judgment and other non-factual views of the Asset Manager represent views of the AssetManager at this point in time. Different views may exist or the Asset Manager may change its views in the future.
• Figures under the same items of other disclosed materials may differ from figures presented in this document due todifference in the rounding of fractions, etc.
• While the Investment Corporation takes reasonable care in the preparation of this document, there may be errors.
Readers are also cautioned that the contents of this document may be corrected or changed without prior notice.
• The Investment Corporation and the Asset Manager assume no responsibility for the accuracy of data, indexes andother information released by third parties.
• This document includes statements regarding future policies, etc. of the Investment Corporation. However, thesestatements do not guarantee said future policies, etc.
• For the convenience of preparing graphs, the dates indicated herein may differ from actual business dates.

33